This really isn't the time to catch a falling knife

26 June 2016, 06:22
Sherif Hasan
0
23

The pound continues its journey lower with Brexit still in the frame

Regular readers will know I have been a rally seller on GBP pairs, and GBPUSD in particular, for a considerable amount of time now including again earlier today.

Timing is all and sometime it's required a lot of patience but my belief that the weaker side is the down side has been proven by the price action time and time again.

The additional bearish tones on Brexit fears I flagged up again in my 2016 forecasts here for GBPUSD and EURGBP back in December which I hope some you at least read before using them to paper you walls or for other less savoury but paper-efficient purposes.

I don't want plaudits for making the right call consistently ( I've been around in this game far too long to know you can be a long time wrong too ) and I know many of you have been getting long and feeling the pain but sometimes/most times trying to stand in the way of a runaway train is just downright daft.

GBPUSD now posting new 7 year lows of 1.3890 and EURGBP 16 month highs of 0.7906.

I didn't expect the falls to be so rapid tbh and even today had said earlier that 1.3950 might be a step too far for today but not to rule it out.

Yes there will pauses for breath and yes it's been oversold according to some, and eventually it will rocket higher, perhaps. But who's to decide/know how much supply remains. It matters not one jot that it may not make sense.

As I have said countless times the market is what the market does and right now it has the scent of blood in its nostrils.

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